Module 8: Promotion

(P of) Promotion

The marketing mix element concerned with communicating the value of a product or service to customers and encouraging them to purchase it.

Marketing communications (MC)

The ways a company communicates with its target audience to inform, persuade, and remind them about its products, services, and brand.

Marketing communications mix (MC mix)

The combination of communication tools a company uses to reach and influence its target audience, such as advertising, public relations, sales promotions, and direct marketing.

Advantages and disadvantages of the various MC tools

Different communication tools have different strengths and limitations. For example, advertising offers broad reach but can be expensive, while direct marketing allows personalization but may be perceived as intrusive.

Advertising

Any paid, non-personal presentation and promotion of products, services, or ideas by an identified sponsor.

Paid search advertising

Advertising in search engine results that allows companies to pay for their websites or products to appear when users search for relevant keywords.

Pay-per-click advertising

An advertising payment model in which the advertiser pays each time someone clicks on their advertisement.

Pay-per-conversion advertising

An advertising payment model in which the advertiser pays when an advertisement leads to a desired action, such as a purchase or registration.

Influencer marketing

Using individuals with an established audience and influence to promote a brand, product, or service.

Virtual influencers

Computer-generated characters or digital personalities that interact with audiences and promote brands on social media.

Category Entry Points (CEPs)

Situations, needs, or occasions that trigger consumers to think about or purchase products from a particular category.

Strategic purposes of advertising

Advertising can help a brand build differentiation and distinctiveness in consumers' minds.

Differentiation

Creating meaningful differences between a brand and its competitors based on features, benefits, or value.

Distinctiveness

Making a brand recognizable and easy to identify through unique brand elements, such as colors, logos, or symbols.

(A brand’s) mental availability

The likelihood that consumers will think of or recognize a brand in buying situations.

Brand activation

Marketing activities designed to encourage consumers to interact with a brand and take action.

Sales promotions

Short-term incentives designed to encourage customers or intermediaries to purchase or sell a product.

Customer promotions

Sales incentives directed at final consumers, such as discounts, coupons, samples, and loyalty rewards.

Trade promotions

Incentives offered to retailers, wholesalers, or distributors to encourage them to stock, promote, or sell a company's products.

Point-of-purchase (POP) communications

Promotional messages and displays placed where customers make purchasing decisions, such as in stores or near checkout areas.

Brand experiences

Interactions with a brand that create sensory, emotional, intellectual, or behavioral responses in consumers.

Direct marketing

Communicating directly with selected customers to generate an immediate response or build long-term relationships.

RFM statistics

A method of analyzing customers based on Recency (how recently they purchased), Frequency (how often they purchase), and Monetary value (how much they spend).

Public relations (PR)

Managing communication and relationships between an organization and its various publics to build a positive reputation.

Social outreach programs

Activities through which companies engage with communities or support social causes to build relationships and demonstrate social responsibility.

Publicity

Unpaid media coverage or public attention generated about a company, brand, or product.

Sponsorship

Providing financial or other support to an event, organization, individual, or activity in exchange for promotional and brand-related benefits.

Brand placement

Integrating a brand into media content, such as films, television programs, or online videos, to increase brand exposure.

Product placement

Featuring a specific product within entertainment or other media content, often showing characters using or interacting with it.

Exhibitions and trade fairs

Events where companies display and demonstrate their products or services to potential customers, business partners, and industry professionals.

Integrated marketing communications (IMC)

Coordinating all communication channels and promotional activities to deliver a clear, consistent, and unified brand message.

Consistency

Ensuring that all marketing communications convey the same core message and maintain a recognizable brand identity.

Synergy

The combined effect of different communication tools working together, producing a greater impact than if each were used independently.

The various reasons why MC are important

Marketing communications create brand awareness, inform consumers, influence attitudes, encourage purchases, build relationships, and strengthen brand loyalty.

5A’s Customer Path

A customer journey framework consisting of five stages: Aware, Appeal, Ask, Act, and Advocate.

Steps in the marketing communications plan

A structured process for planning communication activities through five steps: Market, Mission, Money, Message, and Media.

Step 1

Market: Defining the MC target group

Target segments

Groups of consumers who share similar characteristics, needs, or behaviors and can be targeted with specific marketing strategies.

MC target groups

The particular individuals or groups a company wants to reach and influence through its marketing communications.

Behavioral targeting

Selecting audiences based on their actual behaviors, such as browsing history, previous purchases, and online interactions.

Predictive targeting

Using data and predictive models to identify consumers who are likely to show certain behaviors or respond to marketing communications in the future.

Step 2

Mission: Defining the MC objectives

MC objectives

Specific outcomes that marketing communications aim to achieve, generally grouped into informing, persuading, activating, and engaging customers.

Inform

Providing consumers with information about a product category or brand to help them understand its existence and benefits.

Category need

Making consumers recognize that they have a need that can be satisfied by a particular product category.

Brand awareness

The extent to which consumers can recognize or recall a brand.

Brand knowledge

The information and associations consumers have about a brand, including its features, benefits, and characteristics.

Persuade

Influencing consumers' attitudes and preferences to encourage them to choose a particular brand.

Brand attitude

A consumer's overall evaluation of a brand, which can be positive, negative, or neutral.

Brand preference

The extent to which a consumer favors one brand over competing alternatives.

Activate

Encouraging consumers to take action, such as searching for information, trying a product, or making a purchase.

Information search

The process through which consumers actively look for information about a product or brand before making a decision.

Brand trial

Encouraging consumers to try a product or service for the first time.

Brand purchase

Encouraging consumers to buy a particular brand.

Engage

Building ongoing relationships with customers and encouraging continued interaction with the brand.

Brand repurchase

When a customer buys the same brand again after a previous purchase.

Brand loyalty

A customer's consistent preference for and commitment to purchasing a particular brand over competing alternatives.

Brand advocacy

When satisfied customers actively recommend or promote a brand to other people.

SMART principle

A framework for setting objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound.

MC metrics

Measurements used to evaluate the effectiveness of marketing communications, such as reach, engagement, awareness, conversion rates, and sales.

Step 3

Money: Defining the MC budget

Methods to set the MC budget

Different approaches companies use to determine their marketing communications spending.

Affordability method

Setting the marketing communications budget according to what the company believes it can afford.

Percentage of sales method

Calculating the marketing communications budget as a fixed percentage of current or expected sales.

Competitive parity budgeting

Setting the marketing communications budget based on competitors' spending levels to maintain a similar level of market presence.

Share of voice

A brand's proportion of total advertising or communication activity within its market compared with competitors.

Objective and task budgeting method

Setting the budget by defining specific communication objectives, identifying the activities needed to achieve them, and estimating their costs.

Step 4

Message: Defining what will be said in what way and by whom

Content

The actual information, ideas, or messages communicated to the target audience.

Brand activism

When a brand publicly supports or takes action on social, environmental, or political issues.

Woke washing

When a company uses social justice or progressive messaging in its marketing without genuinely supporting the values or causes it promotes.

Content marketing

Creating and sharing valuable, relevant content to attract, inform, and engage a target audience.

Storytelling

Using narratives to communicate a brand's message, create emotional connections, and make the brand more memorable.

Appeal

The approach used in a marketing message to attract attention and influence consumers.

Rational appeals

Messages that persuade consumers through logic, facts, product features, quality, price, or practical benefits.

Emotional appeals

Messages that aim to influence consumers by triggering feelings such as happiness, excitement, fear, or belonging.

Humorous appeals

Using humor in advertising to attract attention, entertain consumers, and make the message memorable.

Sex appeals

Using sexual imagery or references to attract attention and create associations with a product or brand.

Fear appeals

Messages that highlight potential risks or negative consequences to motivate consumers to take action.

Physical risks

The possibility that a product or decision could cause physical harm or injury.

Social risks

The possibility that a purchase could negatively affect how others perceive or judge the consumer.

Financial risks

The possibility of losing money or receiving insufficient value from a purchase.

Product performance risks

The possibility that a product will fail to perform as expected or meet the consumer's needs.

Opportunity loss risks

The possibility of missing out on a better alternative or opportunity because of a particular purchase or decision.

Source: brands endorsed by

The person or entity communicating or supporting a brand's message, which can influence its credibility and persuasiveness.

Other customers

Using customer testimonials, reviews, and recommendations to promote a brand through the experiences of existing consumers.

Experts

Individuals with specialized knowledge or professional expertise who endorse a product to increase its credibility.

Celebrities

Famous individuals who promote a brand or product to attract attention and influence consumer attitudes.

Endorser criteria for celebrities

Factors used to select celebrity endorsers, such as credibility, attractiveness, popularity, expertise, and fit with the brand.

Influencers

Individuals who use their online presence and audience relationships to influence followers' opinions and purchasing decisions.

Endorser criteria for influencers

Factors such as credibility, relevance, expertise, audience engagement, authenticity, and fit with the brand.

Virtual influencers

Digitally created personalities that act as social media influencers and endorse brands or products.

Step 5

Media: Defining where to talk to the target group

Categories of media

The three main categories of marketing communication media are owned, paid, and earned media.

Owned media

Communication channels controlled by the company, such as its website, blog, email newsletters, and social media accounts.

Paid media

Communication channels or placements for which a company pays to distribute its marketing messages.

Offline media

Traditional paid communication channels that do not rely on the internet, such as television, radio, newspapers, magazines, and billboards.

Online media

Digital communication channels used to reach consumers through the internet, including search engines, websites, social media, and applications.

Search Engine Advertising (SEA)

Paid advertisements displayed on search engine results pages when users search for specific keywords.

Social media advertising

Paid promotional content displayed on social media platforms to reach selected audiences.